Just_Super
Investment thesis: Next year is set to be a very challenging year for investors. Prospects for the S&P 500 Index (SP500), the way I see it, should follow a trend of weakness in H1, 2023, with the index price
S&P Should Grind Higher To 4,200 By Year-End 2023
Summary
- Next year will be a tough year for investors, as a stagflationary global economic environment entrenches itself. A global recession may occur, yet inflation will persist.
- A number of commodities, ranging from food to oil will see persistently high prices, which will prevent higher interest rates from subduing consumer inflation.
- At the same time, weak economic growth will prompt central banks, including the Fed to ease off on monetary tightening in H2, 2023, which should push stocks higher.
- Within this macroeconomic context, the S&P index will likely spend most of the first half of this coming year lower from current levels, with a grind higher in the second half of the year to about 4,200.
- Within the S&P, energy and materials will most likely outperform the rest of the sectors.
My name is Zoltan Ban, I have a BA in economics. I am a personal investor with over a decade and a half of active trading experience.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of X, DOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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